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ETP ANNUAL REPORT 2011
14
Agriculture
The Agriculture NKEA looks into transforming the rural
economy. This sector focuses on four key themes to
transform the agriculture industry to agribusiness: ensuring
food security, tapping premium markets, capitalizing on
Malaysia’s competitive edge and expanding participation
in the regional value chain. A total of 16 EPPs have been
identified to deliver RM28.9 billion in incremental GNI and
create 74,600 jobs.
In 2011, the breakthrough achievement is in the introduction
of reimbursable incentives to the anchor companies based
on KPI of work completed and production. This NKEA is
recognized as an enabler which facilitates company growth
and socio-economic development.
To date, the NKEA incentives procedure saw the approval
of 39 companies, with committed private investments of
RM3.2 billion to generate RM10.22 billion in GNI at 2020 and
a cumulative of 31,504 jobs (42 per cent of overall target by
year 2020) by the end of each project’s completion date.
Private investment for EPPs surpassed the original target of
66 per cent to achieve 91 per cent by the end of 2011. This
significantly reduced public investment to nine per cent
from the initial estimate of 34 per cent.
These incentives provided by the government to the anchor
companies are given with a caveat that the surrounding
community of any given project within this NKEA must be
involved and thus benefit economically.
Healthcare
In 2011, Business Opportunity 1 – Medical Devices Industry
was transformed into seven new EPPs, bringing the total
number of EPPs under the Healthcare NKEA to 13. With
these changes, the Healthcare NKEA will contribute to
incremental GNI growth of RM35.5 billion and 181,000 jobs
by 2020.
We have made major policy changes to enable us to
transform Malaysia into a generics export country. The
most significant is the shortening of the compulsory
services for pharmacists from three years to one. They are
also allowed to do their practical training in recognised
private pharmaceutical industry facilities. In addition,
the Pharmaceutical Off-Take Agreement-Government
Procurement for New Local Manufactured Pharmaceuticals
has been agreed upon with implementation in 2012.
We continue to make inroads in healthcare travel. The
Malaysia Healthcare Travel Council, the main care taker has
been corporatized while various tax incentives, automatic
issuance of working permit for spouses of medical
professionals and shorter processing time for healthcare
tourists have been made available. This EPP has generated
RM436 million in revenue.
Competitiveness:
Six structural reforms to ensure changes
In July 2011, we launched six Strategic Reform Initiatives
(SRIs). The SRIs represent policy recommendations made in
the New Economic Model and the cross-cutting reforms to
enable Malaysians to be competitive in the global arena.
Competition, Standards
and Liberalisation
This SRI has made good progress. The Competition Law, to
safeguard against anti-competitive practices and abuse of
market power, came into force in January 2012. In addition,
the Prime Minister has announced the liberalisation of
foreign ownership of banks as well as 17 services subsectors.
These sub-sectors to be liberalised in stages by end
2012 include private hospital services; medical and dental
specialist services; architectural, engineering, accounting
and taxation, legal services; courier services; education and
training services; as well as telecommunication services.
Human Capital Development
The minimum wage is expected to be announced in the
first half of 2012 while the upskilling and upgrading of the
workforce continues. Focus has been given to five sectors;
Oil, Gas and Energy, Tourism, Electrical and Electronics,
Communications Content and Infrastructure, and Business
Services. In addition, the MyProCert programme which
aims to upskill Malaysians to international certification
standards targets to produce 5,000 new certified
professionals by 2014.
Government’s Role in Business
33 companies under six Government Linked Investment
Companies (GLICs) have been identified as ready for
divestment either through a listing, pare-down or outright
sale. Under the plan to rationalise the portfolio of GLCs,
five have been identified for stake pare-downs, seven
for public-listing and 21 for outright sale. For the year of
2011–2012, 24 companies have been identified for the
Government’s divestment exercise. For the year of 2011–
2012, 24 companies have been identified for divestment,
and the divestment process will begin as the shares hit an
agreed-upon strike price.